Jumat, 04 November 2011

The Obstacles In Enhancing Indonesia’s Competitiveness

The Obstacles In Enhancing Indonesia’s Competitiveness
Indonesia’s competitiveness is weak due to the domestic factors, such as, lack of infrastructures, “high cost economy”, and lack of legal certanty:
First, Indonesia is lack of infrastructures, such as, toll road, railways, ports and electricity power plant. Second, “high cost economy” in business because of corruption, uncertanty of law and regulation, make Indonesia’s products can not compete in either domestic or in international market. Third, the legal certanty in Indonesia does not always exist, legal uncertanty in the elements of legal substances, apparatus of law, and legal culture; is also the main factor to cause “high cost economy”.
The role of law in the development of the third countries is influnced by great intellectual interest and considerable political importance. We have been trying incessantly to determine the extent to which the role of law influence economic development. We act upon the assumption that there is such relationship. The legal environment is importance next to economic opportunity, political stability, and invesment incentive. We recognized that the rapid economic development would require an effective legal framework.
Burg’s study of the law and development literature cities at least three qualities in law which render it conducive to development: stability, predictability and fairness. The need for predictability is especially needed in countries like Indonesia in where for the first time make an efforts to achieve sustainable development.
The stability function is potential to balance and accommodate competing interest, such as, to balance between the need of energy and environmental protection, to balance between the corporate interest for profit and labor rights for approriate wages.
Finally, aspects or fairness inthe context of process, equality of treatment, and standards for government behavior, is necessary for both the maintance of the market mechanism anf the prevention of bureaucratic excesses.
Friedman said that the legal system always has 3 elements: substance, apparatus, and legal culture. The statutes and regulations contitute only one of the elements in the legal system. In order to enable it to live and proceed, the apparatus and the legal culture of the people must support the operational aspect of the law. Legal reform must therefore be continued for the improvement of judicative, executive, and legislative apparatus. In line with this, there must be legal culture reform on the part of the Indonesian people supporting democracy, justice and protection of human rights, energy and environment.
Laws and regulations alone will not suffice. There is a need for clean and efficient apparatus to implement the laws and regulations.
The role of the court will be increasingly important in the future. The involvement of the court in dispute resolution become importance as well as arbitration. Efforts must be continued to have a clean and dignified court.
In addition to improve the court institution, Indonesia established a means for alternative dispute resolution. Dispute resolution through the court in the west and in the east has its short comings. It is the time-consuming from the first level court up to the appeal or cassation level, it is costly and time consuming, it widens the gap in the relationship of the parties in the dispute.
Cultural reasons have also caused the people to tend to waive the court as a place for resolution of disputes arising among themselves.
Each legislative institution commission needs to include experts. Although the parliament is a political representative institution, knowledge of and information on matters of a technical nature has to be available. Therefore experts from various sectores have to support the parliament. Thus the parliament will be able to perform its function with a quality that is balanced with the executive. Many legislative in intiatives in various industrialized and developing countries fail to achieve their purpose on that and are almost always blamed the public segments, so that the law cannot be enforced. Actually the responsibility for failure is mostly with the legislative itself because they fail to capture the living aspiration.
Metaphorically speaking, let us suppose that economic growth is a building process. This building should stand on a strong foundation especially on the law. This strong foundation can be existed if the ground is stable. Foreign capitals will come if there are political stability, economic opportunities, and legal certanty. Legal reform to attract foreign inestors is not only restricted to investment laws and the apparatus but is also concerned with reform of all the elements within the legal system as a whole, the government apparatus and the legal culture of the Indonesian society.
In conclusion, i convincingly believe we shall overcome the problems of lack of the infrastructures, “high cost economy”, and legal uncertanty, in order to enhance Indonesia’s competitiveness.